Investments of Barrick in Perú Toronto, March 2006
TABLE OF CONTENTS P E R U Barrick in Peru Pierina Mine Lagunas Norte Mine Environmental Protection and Community Programs Conclusions
BARRICK IN PERU P E R U 1993-1994 Barrick becomes active in Peru; Minera Barrick Misquichilca S.A. was constituted as a company 1996 - Acquired Arequipa Resources, owner of the Pierina exploration project advances 1997 - The EIA for Pierina was approved Operations began in 1998 2001 - MBM was awarded the bid regarding the Alto Chicama Concession 2004 - The EIA for Alto Chicama Lagunas Norte was approved Q-2 2005 Production began at Lagunas Norte.
Barrick in Peru Pacific Ocean Cajamarca Trujillo Huamachuco Alto Chicama Pierina Huaraz area enlarged LIMA Arequipa
PIERINA MINE Located in the Ancash Region Open-pit mine Average remaining grade 1.00 grams per tonne Production to date: Crushing capacity: 42,000 tonnes per day Total tonnes per day: 140,000
LAGUNAS NORTE Located in the La Libertad Region Open-pit mine Average grade 1.25 grams per tonne Production to date: Crushing capacity: 63,000 tonnes per day Total tonnes per day: 100,000
BARRICK S CONTRIBUTION TO THE REGION AND THE COUNTRY Gold is the country s N 1 export Peru is now the largest producer in South America and ranks 5th in the world thanks in part to Barrick s Pierina and Lagunas Norte mines The company has paid over $220 million in various taxes Capital asset investments: $280 million to build Pierina, $340 million to build Lagunas Norte, and further sustaining capital Approximately $38 million in taxes will be returned to the regions based on the 2005 results
PIERINA MINE
PIERINA MINE
PIERINA MINE
PIERINA MINE
Environmental Panel PIERINA LEACH PAD
PIERINA PONDS Polishing Pond Sediment Pond Collection Pond
PIERINA COLLECTION POND
PIERINA POLISHING POND
LAGUNAS NORTE / ALTO CHICAMA
Lagunas Norte Project Alto Chicama District Located in the District of Quiruvilca, in Santiago de Chuco, La Libertad province Barrick has been exploring it since 2001 It was awarded the public bid in January 2001 It belonged to Centromin Peru Similar in size and cash cost structure to Pierina Capital investment: $340 million Life of Mine: At least 10 years Reserves calculated at 8.3 million ounces of gold The Lagunas Norte-Alto Chicama process is similar to the one in Pierina
LAGUNAS NORTE-ALTO CHICAMA Ascope Casca Alto Chicama Otuzco Cajabamba Huamachuco #³ Sanchez Carrión Located in La Libertad, between the provinces of Otuzco and Santiago de Chuco,, 4,100 meters above sea level Lagunas Norte Trujillo #³ Trujillo Viru N 0 10 20 Kilometers Julcan Santiago de Chuco Palla The camp is located in Quiruvilca,, at km. 132 of the Trujillo Huamachuco road
LAGUNAS NORTE
LAGUNAS NORTE PANORAMIC VIEW
LAGUNAS NORTE - OPERATIONS PRIMARY CRUSHER SECONDARY CRUSHER
LAGUNAS NORTE OPERATIONS CONVEYOR BELT
LAGUNAS NORTE OPERATIONS LEACH PAD PHASE 0
LAGUNAS NORTE OPERATIONS LEACH PAD PHASE 1
LAGUNAS NORTE OPERATIONS PROCESS PLANT
LAGUNAS NORTE OPERATIONS SMELTING
ENVIRONMENTAL PROTECTION AND COMMUNITY PROGRAMS
PIERINA ENVIRONMENTAL PROTECTION / PRACTICES
PIERINA ENVIRONMENT DRAINAGE IMPROVEMENT FOR EROSION CONTROL Erosion Control 13.84 Km of erosion control structures (stone masonry and gabions) 23 Km of erosion control structures in ravines (sedimentation ponds, stone masonry and gabions, etc.)
PIERINA CONCURRENT RECLAMATION P E R U 2. Reshaping of slopes 1. Earth movement 3. Soil Compacting 5. Replanted area 4. Top soil covering
PIERINA - ENVIRONMENTAL PROTECTION Remediation Wastedump recovery
PIERINA SOCIAL INVESTMENT Houses at Mataquita Housing and School
PIERINA SOCIAL INVESTMENT Pastures Irrigation
PIERINA SOCIAL INVESTMENT CATTLE RAISING Agriculture
PIERINA SOCIAL INVESTMENT Agriculture
LAGUNAS NORTE ENVIRONMENT EROSION CONTROL
LAGUNAS NORTE ENVIRONMENTAL PROTECTION 747 sedimentation dikes with gabions and stone masonry and 27.7 km of silk fences
LAGUNAS NORTE ENVIRONMENTAL PROTECTION Sediment flows are controlled in the areas below the mine
LAGUNAS NORTE ENVIRONMENTAL PROTECTION Sediment containment terraces below the slopes Reclamation Areas
LAGUNAS NORTE ENVIRONMENTAL CHUYUGUAL TREE NURSERY Local workers build the terraces to plant quenuales and pines seedlings Capacity for 200,000 trees per year
LAGUNAS NORTE ENVIRONMENT TOP SOIL STRIPPING AND TRANSFER CONTROL Top soil Stockpile Top soil accumulations before its final transfer to stockpiles.
LAGUNAS NORTE ENVIRONMENT COMMUNITY NURSERY AT LOS LOROS SEEDLINGS BUILDING TERRACES 40 COMMUNITY MEMBERS BENEFIT FROM THIS PROJECT PROGRAMMED GOAL: 30.000 FOREST PLANTS 24 HECTARES WILL BE PLANTED AS A RESULT OF THIS PROJECT
LAGUNAS NORTE - ENVIRONMENT TREE NURSERIES Quenuales and pines seedlings
LAGUNAS NORTE ENVIRONMENT WATER MONITORING WITH COMMUNITY REPRESENTATIVES
LAGUNAS NORTE ENVIRONMENT
LAGUNAS NORTE SOCIAL INVESTMENT IMPROVEMENT OF THE PONCE ROAD ( 8,5 KM ) EL SAUCO COMMUNITY 65 Families will benefit from this work Participative Meeting with community Meeting with authorities to verify route
LAGUNAS NORTE SOCIAL INVESTMENT MODEL FARM AT EL SAUCO PREPARING THE LAND IRRIGATION PASTURE CUTTING GRAZING
LAGUNAS NORTE SOCIAL INVESTMENT WHEAT SOWING 10 FAMILIES WILL DIRECTLY BENEFIT FROM THIS PROJECT PREPARING THE GROUND SOWING THE WHEAT MATURING PROCESS READY FOR HARVESTING
LAGUNAS NORTE SOCIAL INVESTMENT 3 CLASSROOMS WERE BUILT AT SANAGORAN 80 STUDENTS WILL BENEFIT FROM THIS PROJECT BEFORE AFTER
LAGUNAS NORTE SOCIAL INVESTMENT HEALTH CAMPAIGNS
LAGUNAS NORTE SOCIAL INVESTMENT TEXTILES AND LOOMS COMMUNITY MEETING CHUYUGUAL WOMEN SHOWING THEIR WEAVING SKILLS
LAGUNAS NORTE SOCIAL INVESTMENT IMPROVEMENT OF THE POTABLE WATER SYSTEM PAMPA VERDE COVERING THE MAIN PIPELINE VERIFICATION OF DELIVERY OF THE POTABLE WATER STUDENTS, TEACHERS AND MBM TECHNICIANS
LAGUNAS NORTE SOCIAL INVESTMENT FARM TRAINING PROGRAM EXPERIMENTAL FARMING Pilot Program GUINEA PIG FARMS
LAGUNAS NORTE SOCIAL INVESTMENT CAREER ORIENTATION FAIR - HUAMACHUCO
CONCLUSIONS
Barrick has been in Peru for 14 years We have has successfully participated in privatization processes We have been able to obtain two tax stability agreements one for each property. Both tax stability agreements have been respected in full On-going operations since 1998 Second operation started in Q-2 2005 We have invested an average of $6 million in exploration during the last 6 years Our investment to date in the country: $700 million
COUNTRY ADVANTAGES Great mining potential Good macro economic standing Country has long mining tradition, thus has qualified workers Exports have duplicated in one year Transparent, comprehensive and balanced permitting process Favorable balance of payment Legal and fiscal transparency and stability
Investments of Barrick in Perú Toronto, March 2006